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Research background: In today’s rapidly evolving business environment, organizations face unprecedented challenges driven by globalization, digital transformation, and shifting workforce dynamics. Organizational behavior (OB) has emerged as a critical discipline for understanding how individual, group, and structural factors influence workplace performance and employee retention. Despite extensive research on isolated OB factors, there remains a need for comprehensive empirical evidence on how integrated OB practices such as leadership, motivation, team dynamics, and ethical culture collectively enhance corporate performance and reduce turnover. Purpose of the article: This study examines the impact of key OB practices on organizational performance and employee retention, addressing gaps in the literature by: (1) quantifying the relative influence of leadership, motivation, teamwork, and ethical culture; (2) testing these relationships using robust econometric methods to account for endogeneity; and (3) providing actionable insights for evidence-based management. Methods: A mixed-methods approach was employed, combining quantitative survey data from 936 knowledge workers across technology, finance, and manufacturing sectors in seven Europe countries complemented by qualitative case studies of best practices from Fortune 500 firms. Two-stage least squares (2SLS) regression addressed endogeneity concerns. Findings & Value added: Key findings reveal that leadership quality is the strongest predictor of organizational performance, indicating that improved leadership significantly enhances revenue growth. The findings also show that motivation plays a crucial role, while team dynamics and flexible work policies contribute positively but to a lesser extent. In terms of employee retention, leadership again stands out as pivotal, showing a strong negative correlation with turnover rates, followed by motivation and ethical culture. The study underscores the importance of integrating multiple OB dimensions to achieve sustained organizational success. By investing in leadership development, fostering a supportive ethical culture, and implementing comprehensive motivation systems, firms can significantly enhance both performance and employee retention. The research contributes to the theoretical understanding of OB by reinforcing transformational leadership and job characteristics theories, while offering practical recommendations for corporate management. Ultimately, this paper advocates for a human-centric approach to management that prioritizes continuous learning and adaptability, enabling organizations to thrive amidst contemporary challenges.
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